What Can You Do Before Your Creditor Issues Charge-Off Declaration And Sells Your Debt?

While big organizations take loans from
creditors directly, small organizations and individuals
take loans via credit cards. There could be situations when an individual or a
small organization reaches a state of bankruptcy. If you are looking for St.
Petersburg bankruptcy attorneys to file a Chapter 7 or Chapter 13 bankruptcy,
Howard & Associates should be perfect for you. It is important for you to
file bankruptcy before your creditor gives a charge-off declaration. A
charge-off declaration will blacklist you or your organization in all the reputed
and registered financial organization so that you never get any credit card or
loan in future.

The
Misconception Of Charge-Off Declaration

There is a wide misconception that charge-off
declaration from the creditors is a good thing. But it is not as it does not
ensure that your debts are discharged. You are still liable to pay your debt,
and it is just a way for a financial organization or credit to flag a warning
against your financial condition to the peers so that you do not get any loan
from other institutes. By charge-off declaration, the credit is keeping your
account aside by extending the time period to repay the debt, and they may
start selling your assets to recover the debt after the allocated time period
of repay.

Sometimes, the creditor may give up all the
hope of getting the money from the debtor, and they generally sell the debt to
a debt buyer for a small fraction of the money of the total debt. The debt
buyer will then go back to the original debtor and employ all the possible
legal means to extract the entire debt, and in the process, it makes a huge
profit after going through an ordeal. The charge-off signals will bring down
the credit score of the individual or an organization and no investor or
promoter will likely to take over the company.

Why Do You
Need An Attorney To Deal With Debt Collector?

The debt collector who has purchased the debt
from the bank for a nominal pay, the person or the organization will employ
aggressive method if you do not respond to the formal methods of communication
and legal notice. Therefore, it is mandatory that you declare your bankruptcy
state at the very beginning with the help of st petersburg bankruptcy attorney. An experienced
attorney has more chances to making it successful so that you get discharged of
the debts or buy enough time to pay them. This will ensure that the debtor will
not be able to flag charge-off declaration and cannot sell the debt to a third-party.
Even the third-party will be legally bound to take no action for a certain time
period.

Furthermore, if the debtor has sold the debt
to an aggressive debt collector, the attorney you will appoint can negotiate
with the debt collector to come to an agreement so that you can pay a lump sum
amount instead of the entire debt. The debt collectors, in general, are always
open to such negotiation after all they are there to make money with whatever
they get.